Despite lower revenue, Hub Power Company Limited (HUBCO), Pakistan’s largest Independent Power Producer (IPP), saw its profit increase by nearly 11% to Rs20.31 billion in the quarter that ended September 30, 2024.
On a consolidated basis, the company registered a profit of Rs18.32 billion in the same period of the previous year, according to a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday.
Earnings per share (EPS) increased to Rs14.74 in the period under review compared to Rs13.17 in the same period last year (SPLY).
On a consolidated basis, the IPP’s revenue from contracts with customers lowered by 5% to Rs32.04 billion in 1QFY25, compared to Rs33.73 billion recorded in the prior year.
The company’s cost of revenue declined nearly 18% to Rs13.99 billion in 1QFY25, compared to Rs16.99 billion in SPLY.
As a result, the gross profit of HUBCO increased by nearly 8% to Rs18.05 billion in 1QFY25. This translates to a profit margin of 56% in 1QFY25, as compared to 49% in SPLY
Meanwhile, the company’s other income significantly increased by over 265%, hitting Rs1.03 billion in 1QFY25, compared to Rs280.8 million in SPLY.
Pakistan’s largest IPP HUBCO posts profit of Rs75.3bn in FY24
The power producer’s profit from operations clocked in at Rs18.4 billion in 1QFY25, up 11%.
HUBCO saw its cost of finance lowered to Rs5.5 billion in 1QFY25, a decrease of nearly 23%.
On the other hand, HUBCO earned Rs10.3 billion as a share of profits from associates and ventures in 1QFY25, a decrease of over 14% yearly.
The company’s profit before taxation stood at Rs23.3 billion, up 8%.
The IPP paid Rs2.98 billion in taxes in 1QFY25, down 7%.
Earlier this month, HUBCO initiated a negotiated settlement agreement with the government amid the termination of the previous agreement relating to the company’s 1292 MW power generation project located at District Lasbella, Baluchistan.
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